There are several business insurances that you must have to do business. This includes workers’ compensation for each employee, professional liability if required for your profession, property and business interruption, and commercial auto insurance if your business uses a car, van or truck. You can see what other similar businesses have with this guide.
The next insurance you should consider will be tied to your contract. Your employees need to be bonded and insured, and if you take a public contract there are many insurance requirements.
You should also consider providing health, life, and disability insurance to your employees and yourself. It may not be mandatory in your state, but it will go a long way toward creating happy employees and brand loyalty, which is only good for business.
Liability insurance protects you if your customer is injured on your property. It will pay compensation, medical bills, court-ordered settlements and payments for injuries. If you manufacture, distribute, or sell products, you need product liability insurance.
If your business relies on customer information such as credit card numbers and other personal data stored in the cloud or on your office machine, cell phone or iPad, you will be more secure if you have cyber liability insurance. Cybercrimes are growing, and identities are being stolen. If you lose your customer’s personal information or get hacked and data is stolen, you will be held responsible. You will be responsible for following infringement notification laws and for any costs incurred due to lost or stolen personal data.
Even with excellent budgeting and learning about the different scopes for your business, you may not be able to create the right plan for you. Insurance agents can do this, but you need to find a good one. You can talk to friends and colleagues to find an agent they like, but you should interview several people before you choose one.
To get started, find a local professional organization, the Better Business Bureau, your local Chamber of Commerce, or a major insurance company to connect with an agent. Then, ask questions about the different types of coverage. Also pay attention to the questions they ask you. This will give you an idea of how serious they are about ensuring you and your business are protected. You can also ask about group rates and discount insurance options. Bring your business plan to the initial meeting. This will give you a head start and help you avoid insurance you don’t need.
There are other ways to save money on business insurance. Like other types of insurance, a higher deductible will reduce the monthly premium. Make sure you have a number at hand in case of an emergency. You can also ask your agent about how the insurance company recommends reducing risk. Reduced risk means lower monthly premiums. The simplest way to reduce risk is to have a written safety policy for your business. It would be even better if a third party security agency did this for you.
Before you find and talk to an agent, be prepared. This will give you the best chance of getting the right protection at the right price. Once you’ve chosen your business insurance plan, be sure to review it with your insurance professional annually. As your business grows and develops, your needs may change, and you may need less or more coverage, or a different type of coverage.
Scott Crawford write for Insureon.cominsurance brokers who help businesses understand their insurance needs.